NEW YORK (TheStreet) -- Shares of AZZ Inc. (AZZ - Get Report) were higher by 7.49% to $45.18 at the close on Friday after the company announced an increase in revenue to $215.1 million for the 2015 fiscal first quarter, compared to $183.2 million for the same quarter last year.
The electrical equipment and components manufacturer reported a slight increase in net income for the most recent quarter to $14.9 million, or 58 cents per diluted share versus $14.5 million, or 57 cents per diluted share for the 2014 fiscal first quarter.
Shares of AZZ are flat in after-hours trading today.
Separately, TheStreet Ratings team rates AZZ INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate AZZ INC (AZZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 28.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- AZZ INC's earnings per share declined by 23.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, AZZ INC reported lower earnings of $2.33 versus $2.37 in the prior year. This year, the market expects an improvement in earnings ($2.63 versus $2.33).
- In its most recent trading session, AZZ has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market on the basis of return on equity, AZZ INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: AZZ Ratings Report